The article presents the changes in size and structure of the local labour markets in medium-sized towns of the Podkarpackie Province in the years 1995–2015. The group of midsize towns is represented by nine cities with a population between 20–100 thousand inhabitants. Together, the population of these towns represents over a half of the urban population in the region of Podkarpackie. In this context, the role of medium towns – as cores of the local labour markets – is often overlooked. The recent situation of examined towns – in terms of the size of labour markets – has deteriorated compare to the 1995. Over the past two decades, the total number of employees decreased by more than 12%. The changes concerns also the employment structure by gender and economic sectors (especially the development of the service sector).